More than $30 million has been graciously donated to victims of the Boston Marathon Bombing, yet it may not be nearly enough to cover the lifelong medical bills for many of those impacted by the tragedy. 

 

The state of Massachusetts, where many of the 260 or so victims reside, mandates residents to have health insurance. However, even those with coverage could face extensive out-of-pocket costs. “This problem will unfortunately be with many of the victims for the remainder of their lives,” said Praveen Subramani, who started a crowd funding campaign for his friend’s parents, Eric and Ann Whalley. Eric suffered severe brain trauma and extensive nerve damage to his foot, while Ann must undergo skin grafting and a bone graft to heal her serious injuries. 

 

The average cost for a day of treatment in a U.S. hospital is $4,287, and those with serious injuries often encounter exorbitant bills. Patients with traumatic brain injuries encounter average per-day costs of $8,000 for acute care and $2,225 for inpatient services. 

 

Treatment costs for the most severely injured victims of the marathon bombing could total hundreds of thousands of dollars, according to numerous professionals with the Health Economics Program at Northwestern’s Feinberg School of Medicine.  

Aside from rehabilitation and hospital costs, a large percentage of those injured will lose out on months of income while they heal. Some of these individuals may also require mental health services to treat anxiety and post-traumatic stress disorders. Moreover, for the more than a dozen victims who lost limbs, their injuries will require a lifetime of costs that mount up rather quickly. 

 

Surgical amputations can cost as much as $40,000 while a single prosthetic limb can cost from $5,000 to more than $50,000, depending on the level of technology. Over a lifetime, medical costs for an amputee can exceed $500,000, and additionally, some victims may pay for modifications to their care and home, which can run an individual tens of thousands of dollars more. 

 

Twenty states in the U.S., including Massachusetts, have passed fair insurance laws for amputees; these laws require a certain level of medical coverage for prosthetic care, and in some of these states, insurance typically covers nearly 80 percent of the costs. 

 

In the 30 states across the nation without laws, coverage can be far worse, with some prosthetic coverage caps falling as low as $2,000 per year. Citing the gaps in coverage, the American Orthotic and Prosthetic Association announced that it would establish a coalition to help victims who have inadequate coverage to satisfy their initial costs. 

 

 

Source: whitehouse.gov

 

After rising as high as 670,000 during the financial crisis, weekly jobless claims are currently at around half of that level. First-time claims for unemployment insurance dropped to their lowest mark in five years last week, providing positive signs that fewer layoffs are taking place in the strengthening economy.

 

According to the United States Department of Labor, approximately 324,000 people filed initial claims last week. This report was better than expected on nearly all accounts; many economists and Wall Street analysts were anticipating an increase in claims. 

 

The report issued by the United States Department of Labor revealed that unemployment claims had declined by nearly 19,000 from the previous week, marking the lowest figure since January of 2008.

 

The weekly numbers can be dicey as many economists prefer to evaluate a four-week moving average to level out the inherent volatility—a figure that also declined according to the United States Department of Labor. 

 

Claims figures are regarded as a legitimate gauge of layoff numbers and provide the first look at how the domestic job market fared in a given month. During the height of the financial crisis in 2009, claims had surged as high as 670,000 a week. 

 

Lay-offs have now restored to pre-recession levels; these figures are consistent with the normal churnings of the job market. That said, hiring of new employees remains sluggish. 

 

A separate report released this week, showed that businesses were reluctant to hire new workers throughout the month of April. Domestic employers added nearly 120,000 workers, marking the weakest month for hiring since last September. 

 

The Labor Department’s jobs report is scheduled to release tomorrow morning. The United States economy added an average of 160,000 jobs each month over the last year, and April is expected to fall in line with this modest pace of hiring. The majority of economists are expecting the report to show that the economy added roughly 140,000 in April, marking an increase of nearly 90,000 jobs from March. Economists are also expecting the unemployment rate to remain at roughly 7.6 percent. 

 

 

Source: whtiehouse.gov

 

The United States Securities and Exchange Commission today charged the gatekeepers of two mutual fund trusts with misleading disclosures regarding the factors they deemed when renewing or approving investment advisory contracts. 

A decent percentage of trusts are created as turnkey fund operations that launch several funds to be managed by different unaffiliated professionals and overseen by a board of trustees. The U.S. federal securities laws require mutual fund directors to evaluate a fund’s contract with its adviser, and the funds must then report back to shareholders regarding the material factors considered by the directors in initiating these decisions. The SEC has been taking a broad look into the investment advisory contract renewal process and the associated fee arrangements latent in the fund industry. 

 

An investigation that arose from an evaluation of the Northern Lights Variable Trust and the Northern Lights Fund Trust found that some of the trusts’ shareholder reports misrepresented information and/or omitted material details concerning how they evaluated particular factors in reaching their decisions on for their funds and on behalf of the connected shareholders. The trusts’ chief compliance officer, along with the trustees of the Northern Lights Compliance Services were found responsible for causing the violations as according to recordkeeping and reporting provisions, the trusts’ fund administrator (Gemini Fund Services) caused the violations.

 

All associated firms and trustees have agreed to settle the charges with the United States Securities and Exchange Commission. The five trustees named in the enforcement action are: Lester Bryan of Utah, Michael Miola of Arizona, Gary Lanzen of Nevada, Anthony Hertl of Florida, and Mark Taylor of Ohio. 

 

According to the order, the Northern Lights Trusts included 71 mutual fund series which were mostly managed by different advisers and sub-advisers. These trustees conducted 15 board meetings from January 2009 to December of 2010; during these meetings the individuals made decisions regarding 113 advisory and 32 sub-advisory contracts. Section 15 of the Investment Company Act mandates all fund directors to request and evaluate material information that is necessary to determine the terms of any contract for investment professionals of registered investment companies. 

 

 

Source: sec.gov

 

Although more work remains to be done, today’s employment report offers further evidence that the United States’ economy is continuing to strengthen after undergoing  one of the worst recessions since the Great Depression. The White House states that it is crucial to remain focused on pursuing initiatives to bolster job creation and expand the middle class, as the nation continues to fight its way back from one of the worst economic collapses of all time. 

 

Today’s job report issued by the United States Bureau of Labor Statistics shows that private sector companies added over 176,000 jobs in April. Total non-farm payroll employment increased by nearly 166,000 jobs last month, and the February and march employment figures were revised upwards by a total of 114,000 jobs. The United States economy has now added private sector jobs every month for 38 straight months, and a total of nearly 7 million jobs has been added to the labor market over that period of time. Moreover, an additional 800,000 private sector jobs have been added to the labor market over the last four months. 

 

The American household survey revealed that the unemployment rate dipped down from 7.6 percent in March to 7.5 percent last month. This rate marks the lowest level since December of 2008. The labor force participation rate; however, remains unchanged at 63.3 percent in April. 

 

The Obama administration continues to urge Congress to replace the sequester with a balanced deficit reduction plan. The White House states that President Obama will continue to put pressure on Congress to act on measures that he called for in his State of the Union to make the nation a magnet for employment opportunities. 

 

According to the establishment survey, employment rose notably in business and professional services, bars and restaurants, health care and social assistance, and retail trade throughout the month of April. Construction declined by roughly 6,000 after increasing for 10 consecutive months and adding nearly 182,000 jobs during this period. 

 

 

Source: whitehouse.gov

 

3-D Printers, the next generation of printers, have officially gone mainstream as consumers can now procure one from Staples for $1,300. 

 

Staples claims it is the first major retailer in the United States to sell a 3-D printer. Staples began selling the Cube, created by 3D systems on the staples.com website last week, and the printer will hit many of the brick-and-mortar stores by June. 

While these new printers have long been used in the industrial manufacturing industry, a recent “maker” movement is popularizing in-home versions of the devices. 

The Cube, similar to other 3-D printers, is a device that creates physical, three-dimensional objects. The printer utilizes a digital design file as a blueprint and then constructs the item layer by layer with a liquid or plastic powder. Consumers may print anything they can design, including coffee cup holders, iPhone docks, toys, action figures etc. 

 

The Cube is capable of printing items up to five-and-a-half inches wide, long and tall in 16 different colors. The printer comes packaged with 25 free design templates.

Following the announcement that the printer would be sold in brick-and-mortar stores, shares of 3D systems were up 4 percent while Staples increased by 3 percent. 

3D systems says it is devoted to the widespread use of 3-D printers, making the expensive and complex technology available to public. However, the company faces a tremendous amount of upstart talent, including the Marketbot, which released the “Replicator 2x” at the Consumer Electronics Show earlier this year. 

 

Following the success Marketbot, crowd-funding site Kickstarter rapidly became filled with similarly named rivals such as Tangi-Bot, Ultra Bot, Rigid Bot, Gigabot, Bukobot and Printrbot. 

 

While several 3-D printer owners may be utilizing the devices to have fun or prototype inventions, other industries are finding utility in the machines. Chefs are tapping into the technology to create intricately designed food while doctors are experimenting to make prosthetic limbs and artificial organs. 

 

 

Source: sba.gov

 

Today marked another record-setting on Wall Street as the Dow Jones Industrial Average closed above 15,000 for the first time ever. The Dow officially closed at a record mark of 15,056. 

 

In addition to the Dow’s surge, investors also pushed the S&P 500 to a new record as the broad index gained .5 percent to end the day at 1,625.96. That said, the momentum didn’t hit the NASDAQ; the tech-heavy index inched up just 0.1 percent after wafting on either side of the breakeven point for the majority of the day. 

 

Stocks in the United States have had a remarkable run in 2013 as all three indexes have logged gains between 14 to 15 percent thus far. 

 

Impressive corporate earnings have been responsible for a significant chunk of the market’s impressive run. Shares of Direct TV popped today, following the company’s better-than-expected earnings report. That said, some companies, including Molson Coors Brewing Company, reported profits and sales that failed to meet earnings’ forecasts. First Solar’s sock also plunged after the company missed earnings. 

Also, OfficeMax fell extremely short of earnings projections and announced that revenue in 2013 could also fail to meet analyst estimates. To offset these crushing announcements, the office supplier issued a special dividend of $1.50 a share. 

 

Moreover, the Walt Disney Company inked a deal with Electronic Arts to develop Star Wars Video Games. Walt Disney, which reported after the bell, surpassed revenue and earnings estimates. Shares of Whole Foods also soared during aftermarket trading as the supermarket crushed estimates. 

 

 

Source: whitehouse.gov

 

The United States Securities and Exchange Commission charged four individual with ties to a New York City brokerage in a scheme involving millions of dollars in illegal bribes paid to a high-ranking Venezuelan official to secure the bond trading business of a state-owned Venezuelan financial institution. 

 

According to the formal complaint filed in federal court in New York City, the global markets group Direct Access Partners executed fix income trades for customers in foreign sovereign debt. Direct Access Partners generated in excess of $66 million in revenue for their parent company from transaction fees on riskless principle trade executions in Venezuelan state-sponsored or sovereign bonds. A percentage of this revenue was illegally paid to the Vice President of Finance for the Social de Venezuela Bank. 

 

“These individual traders triggered a scheme that was staggering in scope and audacity,” said Andrew Calamari, the Director of the SEC’s New York Regional office. “These individuals thought they covered their tracks by using offshore bank accounts and a shadow accounting practice to monitor their illegal bribes and profits; however, they underestimated the SEC’s due diligence capabilities and tenacity in piecing their scheme together.”

 

According to the complaint, the scheme started in October of 2008 and continued through at least June of 2010. Bandes was a new customer to Direct Access brought in by Direct Access Global executives through their connections to Jose Hurtado, whom the SEC pinpointed as the intermediary between the firm and Hurtado. 

 

The United States Securities and Exchange Commission alleged that in January of 2010, the traders involved in the scheme and Gonzales arranged for two fraudulent trades with Bandes as both the buyer and seller. These trades caused Bandes to pay Direct Access Partners more than $10 million in fees, a large of percentage of which was transferred to Gonzalez for authorizing the blatantly illicit trades. 

 

Those named in the complaint are charged with fraud; the SEC is seeking final judgments that would require those named to return all ill-gotten profits with interest and pay financial penalties.  

 

 

Source: sec.gov

 

The United States’ annual deficit has dropped 32 percent over the first seven months of the fiscal year compared with same period last year, according to a report issued by the U.S. Congressional Budget Office. The primary reason why our nation’s deficit dropped so drastically: a significant jump in tax revenue. 

 

Tax collections rose by an astounding $220 billion or 16 percent between the start of the fiscal year on the 1st of October through April 30th. Payroll and individual taxes accounted for nearly $185 billion of this increase. 

 

The tax haul increased sharply primarily because salaries and wages were higher, the fiscal deal formulated over New Year’s raised tax rates on the highest earners, and because of the payroll tax cuts over the past two years. Moreover, according to the United States Congressional Budget Office, spending dropped nearly 2 percent year over year. 

 

The most significant percentage decrease occurred in the payment of unemployment benefits, which dropped nearly 25 percent, or $15 billion. Defense spending also decreased by nearly 5.5 percent or $20 billion, and “other spending activities”—primarily spending on non-defense related programs—fell nearly 8.6 percent or $58 billion. 

 

Spending in some programs or categories; however, was slightly up. Medicaid, Medicare and Social Security outlays for example rose by a combined $50 billion or 6.5 percent. 

 

The United states has managed to rack up an estimated $489 billion in debts over the first seven months of the year; however, this figure is roughly 33 percent less than the $720 billion recorded over the same period last year. 

 

Later this month, the United States Congressional Budget Office is expected to publish new estimates for taxes, spending, and deficits over the next decade. Earlier this fiscal year, it is estimated that the annual deficit for 2013 will hover around $845 billion; however, many budget experts expect the deficit for this year will come in far lower than this figure. 

 

 

Source: whitehouse.gov

 

Ms. Anne Small comes to Securities and Exchange Commission from the White House Counsel’s Office where she served as a special assistance to the President and Associate Counsel to the President since 2011. Ms. Small has advised on legal policy questions with a focus on economic issues. 

 

Anne Small, prior to being named General Counsel of the Securities and Exchange Commission, previously worked at the SEC as Deputy General Counsel for Adjudication and Litigation, helping to oversee enforcement issues, adjudications, and appellate matters. Ms. Small becomes the first woman to serve as General Counsel of the United States Securities and Exchange Commission. 

 

“I am thrilled that Anne will be returning to the agency at a moment when our rule writing is in full swing and our program continues to attack cases involving complex transactions,” said Mary Jo White, the chair of the agency. “The Securities and Exchange Commission will benefit from Ms. Small’s judgment, experience, and talent.”

Before assuming a role with the federal government, Ms. Small was employed with WilmerHale LLP, where she served as partner in the litigation unit. Ms. Small was involved in securities and commercial litigation, a wide range of criminal and civil matters, and trial work. 

 

In response to her hiring, Ms. Small said, “It is an absolute honor to return to the Securities and Exchange Commission. I look forward to working with the staff in the General Counsel’s Office and serving Mrs. White and the other professionals in the agency to protect investors. 

 

Ms. Anne Small is expected to arrive at the Securities and Exchange Commission soon and will succeed former General Counsel Geoffrey Aronow, who will become a senior member to the Chairman. 

 

Ms. Small started her law career as a clerk for Judge Guido Calabresi of the United States Court of Appeals and for Justice Stephen Beyer on the United States Supreme Court. Ms. Small received her J.D. in 2001 from Harvard Law School, where she earned the Sears Prize and served as the President for the Harvard Law Review. 

 

 

Source: SEC.GOV

PETA purchased stock in SeaWorld, which went public last week, to pressure the company into freeing what the environmental protection group deems as “enslaved” killer whales. 

 

The message from PETA is simple: Free the killer whales. David Perle, a leader and spokesman for the People for Ethical Treatment of Animals, claims his organization purchased 80 shares of SeaWorld worth roughly $2,275 when SeaWorld went public earlier this month. 

 

According to the animal rights organization, the purchase of stock is the smallest number of shares needed to give them the right to attend and speak at annual shareholder meetings, and to submit resolutions to encourage policy changes. 

PETA said its first order of business as a shareholder is to demand the release of its killer whales, starting with Corky, who has been performing with the company for almost 50 years. 

 

PETA claims it wants to educate other shareholders about the entertainment park’s cruel tactics that involve tearing dolphins and orcas away from their families and imprisoning them in minuscule tanks where they suffer captivity-related illness and stress. 

 

Spokespeople for SeaWorld are having none of PETA’s stock purchase and subsequent demands, citing the animal rights groups’ “strategy of attempting to disrupt business through publicity stunts, protests, and shareholder resolutions” is shameful. 

SeaWorld added that Corky and the other animals under SeaWorld’s care “live in next-generation facilities and are cared for by skilled professionals in accordance with federal and state laws, including the Federal Marine Mammal Protection Act and the Animal Welfare Act.”

 

Spokespeople for SeaWorld said the company will attempt to serve PETA as it would with any other shareholder by creating value in the company. That said, SeaWorld also claimed that PETA’s views are “well outside of the public’s view” and that their stock-purchasing strategy is a poor attempt to disrupt the company’s practices. 

 

 

Source: whitehouse.gov